HomeMy WebLinkAbout20210405 - CC Workshop Packet Wwwaft
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s City Council Memorandum
Hasting
MINNESOTA
To: Mayor Fasbender& City Councilmembers
From: City Administrator Dan Wietecha
Date: April 5,2021
Item: American Rescue Plan
Council Actions Requested:
Informational discussion.No action needed at this time.
Background Information:
The American Rescue Plan Act of 2021 was signed into law on March 11, 2021. It provides $1.9T in
economic and public health relief to families, government,businesses, schools, non-profits and
others impacted by the COVID-19 public health crisis. For our discussion, a key provision is $350B
for state and local governments,based on population.
The amount estimated for the City of Hastings is approximately $2.6M. The funds will be distributed
in 2 tranches, half in the immediate future and half a year from now. The first half is to be distributed
to the State of Minnesota within 60 days of being signed into law. Then the state has 30 days (subject
to a potential extension)to distribute it to the municipalities. The real key in the timeline is the final
deadline: the funds need to be utilized by December 31, 2024.
At this time,we are awaiting guidance from the US Treasury for clarification and details about the
use of the funds. Broadly the eligible uses appear similar to those last year with the CARES Act
funds,with 3 significant changes.
• Replacement of lost or delayed revenue is now permitted; note that the law explicitly
prohibits using the funds to offset a reduction in tax revenues either directly or indirectly
resulting from a change in law,regulation, or administrative interpretation that reduces or
delays any tax.
• Investments in water, sewer, and broadband infrastructure are now permitted.
• It is believed that the response to COVID-19 includes future-oriented investments to help
take us past the pandemic.
The City will be required to submit reports on the use of the funds as well as conduct a single audit.
Additionally,we have a number of lessons learned from the CARES funds last year.
• With the deadline of December 2024,there is time to work with these funds. It is now
possible to pursue projects that need design, construction, or other lead time. This may prove
a viable revenue to accomplish some of the projects in our CIP/CEP. For example,upgrading
the accounting software to better enable a remote work environment, HVAC improvements
to increase fresh air circulation, or EOC improvements in preparation for future emergency
response may be viable under this new funding.
• As we saw with the CARES funds,these projects can take considerable staff time, even when
we contracted for assistance administering grants to businesses and non-profits.
• Dakota County saw real differences in the companies it contracted with for administering
grants. Hiring a good company and being clear about expectations can go a long way toward
having a user friendly and streamlined process.
• Use of the funds for construction projects may include additional design and reporting
requirements beyond what we would normally undertake.
• There is much more funding and assistance coming through ARP and CARES. It would be
beneficial to map out what other agencies (state,region, county) are undertaking projects to
avoid duplicating or overlapping service. For example, other agencies are already discussing
housing and business assistance.
Besides the American Rescue Plan funds,there may be other revenues the City could explore.
• FEMA—PA: We did not pursue this last year because it has tight criteria for eligible uses,
much paperwork, and a 25% local match. In January 2021,the local match was eliminated. It
may be worth reviewing expenses retroactively to capture this.
• ARP: Aside from the direct assistance to cities,the ARP includes funds for specific areas
such as fire department training.
• Community Project Funding: Congress will be considering direct funding for earmarked
projects in areas such as transportation, emergency response technology, outdoor recreation,
and pre-disaster mitigation. This is expected to be very competitive and will require much
advocacy.
Financial Impact:
$2.6M in grant revenues
Committee Discussion:
Not applicable
Attachments:
Not applicable